Great news! According to new data from the US Census Bureau, more than 5.4 million new businesses were formed in the United States last year. In 2020, the number was 4.4 million; the year before that, 3.5 million. It might also be a part of what explains the so called Great Resignation movement that is happening. Based a on a study performed in 2019 at least 20% of employees dreamed of opening their own business. However, with that dream came fears and today we dive into those.

The same study that suggested that 20% of employees wanted to open their own company also asked what was holding them back. The study suggested the five main fears that hold people back are:

  1. Fear of inconsistent income (35% said this holds them back);
  2. Fear of not having enough cash, or of incurring debt (28%);
  3. Fear of not having a fully formed business plan (27%);
  4. Fear of making less money than they did as an employee (27%); and
  5. Fear of not having health benefits (20%)

All of those fears are 100% legitimate. If you don’t have a fully formed plan, or if you can’t really afford to risk going without a paycheck (or making less money) for a bit, then going out on your own is riskier. Also understand that that in the first several months or potentially years you may have to take a pay cut, etc. This is where the all important “why” comes into play. If the why behind your reason for opening the company is strong enough, and you can realistically afford it then it makes the short term impact of a lower salary, etc. more manageable.

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